Technical Update - Top and reversal patterns in EU Indices: DAX, AEX25, BEL20 & CAC40 Technical Update - Top and reversal patterns in EU Indices: DAX, AEX25, BEL20 & CAC40 Technical Update - Top and reversal patterns in EU Indices: DAX, AEX25, BEL20 & CAC40

Technical Update - Top and reversal patterns in EU Indices: DAX, AEX25, BEL20 & CAC40

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

Summary:  DAX forming top and reversal. AEX taking out key support. BEL20 and CAC40 look heavy but still above supports.
Index and Index tracker cfd's levels. DAX/GER40, AEX25/NETH25, BEL20/BELG20 & CAC40/FRA40


DAX formed a Bearish Engulfing pattern yesterday taking out the past two days of trading. There has been a warning sign of a weakening of the uptrend with RSI divergence.
If DAX drops below 15,700 further selling down to the support at around 15,482 where 55 daily Moving Average will add to the support.
A close below 15,482 could lead the way for a sell- off down to 0.618 retracement at around 15,051. For DAX to resume uptrend a close above 16,012 is needed. If that scenario plays out DAX could test all-time highs at around 16,290

 

Source all charts and data: Saxo Group

GER40 cfd . Support at around 15,500. 55 daily Moving Average will provide some support.
A close below 15,500 could lead to sell off down to around 15,050.

AEX 25 formed as Bearish Engulfing candle yesterday and closed below key support at 747 to close on the top of the Ichimoku cloud. RSI is still above 40 threshold giving a bit of hope to Bulls for a rebound
However, if AEX closes below Tuesday lows RSI is quite likely to close below 40  meaning it will be in negative sentiment supporting lower AEX levels.

Support at the 0.618 retracement at around 733.
For AEX to resume uptrend a close above 760 is needed. If that plays out AEX could climb higher towards 770-780.

NETH25 cfd levels and supports

BEL 20 Bearish Engulfing yesterday indicates lower levels are likely. BEL 20 is below its 21,55  and 100 Moving Averages suggesting further downside.

Support at 3,733. A close below could see further selling pressure down to around 3,653.
To demolish and reverse this bearish picture a close above 3,815 is needed for at move to resistance at around 3,894

BELG20 cfd levels and supports

CAC 40 correction ongoing. RSI still positive and no divergence meaning the Index could move higher but for this to unfold a close above 7,506 is needed. If CAC40 closes below 7,300 it could experience a sell-off down to the 0.618 retracement at around 7,096.
55 daily Moving Average adds to the support at 7,300.

FRA40 cfd levels and supports

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)

Saxo
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo is a registered Trading Name of Saxo Capital Markets UK Ltd (‘Saxo’). Saxo is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

©   since 1992